The Russian government has banned crypto mining in ten regions for a period of six years. . Russia cited the industry’s high electricity consumption as the main reason for the ban. Cryptocurrencies are particularly energy hungry, which can already be attributed to mining operations .
This ban will come into effect on January 1 and last until March 15, 2031. The country’s Council of Ministers has also stated that additional bans may be necessary during times of peak energy demand in other regions. It could also go the other way around. The ban could be temporarily lifted or changed in certain regions if a government commission examines changes in energy demand and deems this necessary.
Cryptocurrency mining only existed since the country had one . Miners must register with the Ministry of Digital Development and energy consumption limits are continuously monitored.
The country has banned the use of cryptocurrencies but allows cross-border payments. The latter is largely seen as an attempt by Russia to avoid sanctions .
Russia isn’t the only country shutting down crypto mining because of the industry’s obscene energy demands. Kosovo to save electricity during an energy crisis. Angola . This country’s law goes a step further and criminalizes crypto mining. Several European countries, have begun to strictly regulate the industry due to the energy shortage.
